Government approves second tranche of capital infusion in PSU banks

The government has approved the second tranche of capital infusion in public sector banks to enhance their capital base. In a regulatory filing to the stock exchanges, Dena Bank said it “has received a communication from Government of India vide its letter… dated March 16, 2017 informing inter alia capital allocation of Rs 600 crore as part of turnaround linked infusion plan.” Kolkata-based United Bank of India too said it has received a communication from the central government regarding capital allocation of Rs 418 crore as part of turnaround...

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n a first in Kerala, ESAF Small Finance Bank opens; targets Rs 20,000 cr worth business by 2020

ESAF Small Finance Bank, Kerala’s first small finance bank, is targeting businesses worth R20,000 crore by 2020. Kerala chief minister Pinarayi Vijayan on Friday inaugurated the SFB in Thrissur. ESAF Microfinance is among the 10 financial services firms selected by the RBI for setting up small finance banks. The bank, promoted by ESAF Microfinance and Investments (P) Ltd, has announced that it will open 85 branches in the first year of operations.The new bank is offering interest rates of between 5.75% and 9% for term deposits of varying maturities....

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29 lakh debit cards subjected to malware attack: Santosh Kumar Gangwar

A total of 29 lakh debit cards were subjected to malware attack last year through ATMs that were connected with the switch of Hitachi, the government said today.As reported by commercial banks, 2.9 million cards were used at ATMs that were connected to switch of Hitachi, which was subjected to malware attack, Minister of State for Finance Santosh Kumar Gangwar said in a written reply to the Lok Sabha.However, he said the successful attempts of misuse of compromised cards as reported to the RBI by banks was only 3,291."RBI has informed that...

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Modi government, RBI may look at penal action, one-time settlement to fix bank defaulters

The Narendra Modi government and RBI are readying a strategy to deal with the bad loan problem, including a one-time settlement scheme for weak sectors and penal action against siphoning of funds. Sources tell ET Now that PMO, Finance Ministry and RBI are together working out a comprehensive strategy to nab top 50 defaulters.Government and the central bank are awaiting the report from banks post completion of forensic audit on big defaulters, an official told ET Now on condition of anonymity."We are instructing banks to initiate forensic audit...

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Government plans to swap CEOs of IDBI Bank and Indian Bank

The government is likely to tap Indian Bank chief executive MK Jain to try and turn around troubled IDBI Bank after seeing his hand in the stunning transformation of the Chennai-based lender. Jain, who is credited with making Indian Bank profitable, would swap positions with IDBI Bank chief Kishor Kharat, who would move to head Indian Bank.This is the first time in recent memory that such a move is being considered and it is likely to set a precedent with performers being rewarded with challenging assignments, said two people familiar with...

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Government may shuffle heads of some PSU banks

The government is considering a proposal to shuffle the heads of some public sector lenders, including IDBI Bank, to improve their performance and resolve the issue of bad loans."There is a proposal for swapping of MD level position in banks which is being looked into. Final decision would be taken after careful consideration," said a source.There are also talks of the CEO and managing director of IDBI Bank, Kishor Kharat, being moved to another bank.The Appointments Committee of the Union Cabinet, headed by Prime Minister Narendra Modi, will...

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Farm loan waivers: As bad loans crisis in banks worsens, SBI chief Arundhati Bhattacharya warns of dangers ahead

State Bank of India (SBI) chairman Arundhati Bhattacharya on Wednesday made her reservations clear on the recurrent practice of waiving crop loans, stressing it disrupts credit discipline as borrowers expect more such relaxations in future. The statement came amid bankers warning of a worsening of the bad loan crisis, and days after the BJP secured a historic mandate in Uttar Pradesh where it had made a pre-poll promise to bring in a loan waiver scheme for farmers in the state.“We feel that in case of a (agriculture) loan waiver there is always...

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Deutsche Bank may sell its Indian retail business to boost capital

Deutsche Bank AG is weighing the sale of its Indian retail businesses as the German lender considers asset disposals to help boost capital levels, two people with knowledge of the matter said. The bank is also considering selling retail operations in European countries including Spain, the people said, asking not to be identified as the plans aren’t public. The Frankfurt-based lender declined to comment.Chief Executive Officer John Cryan earlier this month announced a strategic overhaul that includes offering 8 billion euros in stock, selling...

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Merger of SBI, Bharatiya Mahila Bank to herald slew of reforms

The government is expected to initiate reforms in the financial sector soon, starting with merger of Bharatiya Mahila Bank with State Bank of India, India’s largest lender.Other key decisions that may be unveiled over the next 2-3 months include new capital infusion parameters for 2017-18, a consolidation road map for state-run banks and insurance firms and steps to resolve stressed assets.“The merger of Bharatiya Mahila Bank may happen within the next few days,” said a senior finance ministry official, adding that consolidation of other state-run...

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SBI to hike stake in credit card JVs to 74 per cent

State Bank of India on Tuesday said it will hike its stake in its two credit card joint ventures with General Electric Company to 74 per cent.SBI's board has given approval to infuse Rs 1,160 crore in the two JVs -- SBI Cards and Payment Services Pvt Ltd (SBICPSL) and GE Capital Business Processes Management Services Ltd (GECBPMSL)-- through purchase of equity shares from GE Capital so as to increase the bank's stake in both the companies to 74 per cent, SBI said in a filing to the BSE.The American company seeks to exit SBI Cards.SBI currently...

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